With California readying for a vote on legalizing recreational cannabis or marijuana by November, there is high enthusiasm over the prospects of a money spinning industry opening up. It has charged up many potential entrepreneurs with excitement. California cannabis legalization vote has absolutely energized entrepreneurs’ with high expectations on the unfolding cannabis market.

According to Deputy Director Taylor West, the number of Californian companies in the National Cannabis Industry Association has swelled to 330 plus. The companies include those led by cultivators, law firms, laboratories, partnerships, accountants, dispensaries, software developers and insurers.

If the California cannabis legalization vote succeeds, then the recreational use of cannabis would allow adults aged 21 and above to keep at least one ounce of marijuana and cultivate six plants in accordance with the rules on commercial cultivation, manufacture, and sale.

A Reuters report notes that California has all the strengths required for making the cannabis industry thrive. It legalized medical marijuana 20 years ago and its medical marijuana market is one of the largest in the US.

Bonafide legalization of cannabis would also boost tax revenue to the state by $1 billion. If the referendum wins, California would be the fifth US state to allow marijuana for recreational use and join Colorado, Washington, Oregon and Alaska.

Gold Rush

“I don’t believe there will be any precedent in the United States that can compare to it except for maybe the Gold Rush,” noted Leslie Bocskor, owner of a Nevada-based private equity firm, Electrum Partners that advises and invests in marijuana-related businesses.

Sensing high prospects from the California cannabis legalization referendum, many biggies are ready to stake their whole career on the Cannabis market.

Politician Daniel Conway is one such person who left a lucrative job as chief of staff to Sacramento’s mayor Kevin Johnson to start a marijuana investment company.

He is bullish about the $4 billion market. Convay sees a chance of not only building a company but sees the scope in building a whole industry as well.

Despite the optimism on California cannabis legalization vote, there is concern that the resistance from some law enforcement and health care groups which scuttled the 2010 vote may gain an upper hand yet again.

Since January, 115 new California companies have joined the National Cannabis Industry Association, bringing total membership in the state to 330, said Deputy Director Taylor West.

New companies include cultivators, dispensaries, laboratories, law partnerships, accountants, software developers, insurers and more, she said.

Their challenge is to set up an infrastructure for a business that is not yet legal. Conway and his business partner, General Hydroponics CEO Ross Haley, for example, recently purchased farmland in Northern California that they hope to use to grow marijuana but would not say where before the measure is passed.

Newport Beach-based Terra Tech is trying to prepare for recreational sales while building a legal business within the state’s medical marijuana marketplace, which has annual sales of $2.7 billion.